Crypto World
South Korea targets 2027 launch for tokenized securities market
South Korea has laid out a three-stage plan to bring stocks, bonds and funds onto tokenized infrastructure, with the final phase set to connect securities settlement to stablecoin-based onchain payments.
Summary
- South Korea will begin expanding tokenized securities in February 2027, starting with selected funds, bonds, unlisted stocks and fractional investment products.
- The second phase will open tokenization to all publicly offered securities, while the final stage will introduce onchain payment infrastructure linked to stablecoins.
- Existing licensed financial firms will be allowed to handle tokenized securities under their current licenses, while qualifying issuers can manage their own securities accounts.
- Retail subscriptions will be capped at the lower of 30 million won or 5% of an issuance, with annual net purchases on OTC exchanges limited to 100 million won.
The Financial Services Commission said Friday that the roadmap will begin when amendments to the Electronic Registration Act take effect on Feb. 4, 2027, expanding tokenization beyond fractional investment products and creating a legal route for conventional securities to be issued and managed through distributed ledgers.
FSC Vice Chairman Kwon Dae-young unveiled the policy at the third meeting of a public-private consultative group attended by the Financial Supervisory Service, financial institutions, industry groups and private-sector experts.
Authorities plan to build the system in stages, starting with a limited group of securities and institutional products before opening tokenization to publicly offered securities and eventually connecting the market to stablecoin settlement.
“Authorities will seek to lay foundations to facilitate the tokenized issuance and circulation of more traditional types of securities, including stocks, bonds, and funds,” Kwon said, describing a longer-term plan to upgrade capital market infrastructure for digital connectivity.
South Korea tokenization plan starts in February 2027
During the first phase, privately pooled money market funds and bonds reserved for institutional investors will become eligible for tokenization. Unlisted stocks issued through trust structures and publicly offered fractional investment securities will fall within the initial framework as well.
The rollout builds on amendments passed by South Korea’s National Assembly in January that recognize distributed ledgers as securities registries while keeping tokenized instruments within the country’s existing securities laws. Crypto.news previously reported that the tokenized securities rules were scheduled to take effect in February 2027 as regulators worked on standards covering issuance, trading and settlement.
Technical infrastructure is being prepared alongside the legal framework. Samsung SDS won a contract earlier this year to develop a token securities platform for the Korea Securities Depository, with completion expected around the time the amended laws take effect.
The system is expected to connect the KSD’s existing electronic securities account infrastructure with blockchain records, covering issuance, circulation checks, rights management and monitoring.
South Korea’s second phase would open tokenization to all publicly offered securities. Regulators have not fixed a start date because implementation will depend on results from the first stage and the pace at which financial companies adopt the required technology.
Stablecoins form the final settlement layer
The third phase would introduce onchain payment infrastructure linked to stablecoins, bringing the cash side of securities transactions onto digital rails.
Its timing remains dependent on pending stablecoin legislation as well as the results of the earlier tokenization stages. South Korean lawmakers have been working separately on a Digital Asset Framework Act expected to cover stablecoin issuance and other parts of the digital asset market.
In August, the FSC said it would accelerate consultations on the legislation as lawmakers sought to complete the framework during the fall session. Stablecoin rules have remained one of the main unresolved parts of South Korea’s digital asset regulatory program.
Tokenized settlement is already being tested outside the planned securities framework. A separate South Korean program has expanded deposit-token trials to nine banks, while the Bank of Korea has studied the use of tokenized bank deposits as settlement money for tokenized bonds and shares.
Private financial institutions are running their own trials ahead of the 2027 legal rollout. Shinhan Asset Management recently signed an agreement to test a tokenized fund denominated in Korean won using Solana, covering investor verification, issuance, distribution and onchain liquidity in a proof of concept.
Retail limits will apply to tokenized securities
The FSC’s roadmap sets investment limits and operating requirements as regulators prepare to bring more securities onto distributed ledgers.
For non-monetary trust beneficiary certificates, the maximum individual subscription would be the lower of 30 million won, roughly $22,000, or 5% of the total issuance volume. Regulators want publicly offered allocations to include a portion reserved for retail investors, with a minimum amount distributed equally.
Retail investors using over-the-counter exchanges will face an annual net purchase ceiling of 100 million won, or roughly $74,000, on each OTC platform.
Existing financial investment companies will not need a separate authorization solely because they handle tokenized securities. Firms already licensed for the relevant financial activity can operate within their existing permitted business areas, although intermediaries handling tokenized securities on OTC markets will need prior consultation with the Financial Supervisory Service.
Authorities plan to introduce another OTC licensing category for debt securities alongside existing categories covering unlisted stocks and non-monetary trust beneficiary certificates. The FSC expects debt-security transactions to become more common as tokenization develops.
Issuers will have another route through the new “issuer account management entity” structure. Companies approved under the system can manage securities accounts themselves instead of relying exclusively on financial institutions.
Applicants must maintain at least 4 billion won, or close to $3 million, in equity capital. Staffing requirements include personnel responsible for account management and internal controls, along with two employees assigned to computer and IT systems. Issuers must meet specified cybersecurity and technology standards.
The Korea Securities Depository has prepared screening criteria for distributed ledgers used by securities firms. Tests will cover core issuance and circulation functions as well as contingency procedures for system failures and other disruptions.
Asian markets are testing blockchain settlement
South Korea’s plan is developing alongside blockchain settlement projects elsewhere in Asia.
Japan is studying a system that could eventually process publicly traded stocks and Japanese government bonds on blockchain infrastructure around the clock. The Financial Services Agency, Ministry of Finance, Bank of Japan and financial institutions are expected to participate, with an initial development plan targeted for early 2027 and possible operations during the 2030s.
Japanese institutions have already begun testing parts of that model. Four Mitsubishi UFJ Financial Group companies launched a proof of concept in August to test JGB repo settlement on Canton Network, examining automated processing and 24-hour settlement. Tokenized deposits or stablecoins are being considered for the payment side of those transactions.
Asia accounted for 30% of global stablecoin trading activity in 2025 and recorded the highest regional growth rate in crypto activity, according to an OECD report cited in the source material.
South Korea itself had 11.3 million verified crypto users, according to FSC data, giving regulators a sizable domestic digital asset market as the securities framework moves toward implementation.
The FSC plans to publish proposed revisions to subordinate regulations under the Financial Investment Services and Capital Markets Act and Electronic Registration Act by the end of September. Securities companies and the Korea Securities Depository will work on the required infrastructure before the first phase begins in February 2027.
Uniswap Labs has purchased a stake in PONS as part of a longer-term partnership, sending the token to a new all-time high of $0.75.
The move comes as the Pons team reported rising activity on the platform, with more than 63% of Robinhood Chain launchpad volume passing through the protocol over the past 24 hours.
Uniswap Labs Confirms the Purchase
Pons announced the purchase on September 4, saying the deal would deepen its partnership with Uniswap and give the two projects “long-term alignment.” However, the post did not disclose how much PONS Uniswap Labs purchased or the value of the transaction.
Still, the market reaction was immediate. At the time of writing, PONS was trading at $0.71, up 40.2% in the last 24 hours and more than 507% in the last week, per CoinGecko. It touched as high as $0.75 earlier in the day, a new price record, before easing back, so the current price sits close to 4% below that peak.
Volume climbed too, with $151.8 million changing hands in the past day, a 9% jump from the session before. And if you look at longer timeframes, the numbers get harder to ignore. PONS is up more than 1,769% in the last 14 days and over 2,713% for the month, a run that traces back to a low of $0.0033 in mid-July, and it’s also up close to 25% on its pairing with Bitcoin.
A Token Built Around Burning Its Own Supply
Pons has leaned on deflationary mechanics since it launched. The project says 29.34% of the total PONS supply has been burned to date, with 80% of protocol fees going toward buying back and burning more tokens on an ongoing basis.
The team has also been adding tokenized stock pairs to its platform, including UPS, Snap, Lululemon, Figma, Moderna, Pfizer, Rivian, Marvell, and Johnson & Johnson in the past day alone. Trading followed. More than 63% of all volume on Robinhood Chain’s launchpad flowed through its platform in a single 24-hour stretch, a day that saw $400 million in volume overall.
Uniswap’s PONS purchase came the same week its own token, UNI, was climbing. As CryptoPotato reported earlier, UNI gained as much as 32% over seven days, and it has since gone even higher, changing hands at just under $6.40 as of this writing, a jump of over 60% in the last 30 days.
The post Uniswap Buys PONS Stake, Token Jumps 40% to New All-Time High appeared first on CryptoPotato.
South Korea’s Financial Services Commission (FSC) has laid out a three-phase plan to build the legal and technical groundwork for issuing tokenized securities—an effort that, if executed on schedule, would clarify how onchain securities could fit within the country’s existing capital markets framework.
In a press release issued Friday, the FSC said tokenized securities are expected to gain formal legal recognition starting Feb. 4, 2027, following an update to the Act on Electronic Registration of Stocks and Bonds. The initiative also points toward a later phase connecting tokenized issuance and payments with stablecoins.
Key takeaways
- The FSC plans to recognize tokenized securities legally from Feb. 4, 2027 via amendments to the Act on Electronic Registration of Stocks and Bonds.
- Phase one covers legal recognition for tokenized versions of selected instruments, including certain funds and bonds, along with unlisted stocks and fractional investment securities.
- Phase two would broaden tokenization to apply to all publicly offered securities.
- Phase three targets onchain payment flows linked to stablecoins, indicating regulators see stablecoins as part of the settlement picture.
- Before launching the roadmap, the FSC intends to collaborate with the Korea Securities Depository (KSD) on the necessary tokenization infrastructure.
A date-specific shift toward legal recognition
Until now, tokenized securities have faced regulatory uncertainty in many jurisdictions—typically tied to questions about legal status, transfer mechanisms, and settlement. South Korea’s plan attempts to remove at least one major friction point by tying recognition of tokenized securities to a concrete legislative timetable.
The FSC said that beginning Feb. 4, 2027, tokenized securities would be recognized as digitized forms of securities after the scheduled update to the Act on Electronic Registration of Stocks and Bonds takes effect. This is intended to align the tokenized form with the legal infrastructure already used for registering and handling stocks and bonds electronically.
The roadmap is described as part of the implementation of amended versions of the Capital Markets Act and the Electronic Securities Act, which the FSC framed as the country’s first tokenized securities framework.
What the three phases cover
The FSC’s approach is staged, moving from recognition of specific instruments to broader application and then toward a more integrated onchain settlement model.
Phase one focuses on bringing tokenized securities into the regulatory and legal fold for a limited set of products. According to the FSC, legal recognition would apply to tokenized securities that include:
- institutional money market funds
- bonds
- unlisted stocks
- fractional investment securities
Phase two would expand tokenization to all publicly offered securities. For market participants, this sequencing matters: it suggests that issuers and intermediaries will be expected to adapt operational and compliance processes first for a controlled set of instruments, before the rulebook potentially broadens to cover a wider universe of public offerings.
Phase three is the most ambitious and forward-looking. The FSC said it aims to enable onchain payments connected to stablecoins. While the announcement stops short of detailing technical standards or regulatory limits for stablecoins in this context, the fact that stablecoin-linked payments are included in the final phase indicates regulators are thinking beyond token issuance alone and toward settlement and custody-to-payment workflows.
Rulemaking steps and the role of market infrastructure
Alongside the legislative timeline, the FSC laid out additional near-term administrative work. It said it plans to propose revisions to relevant subordinate regulations by the end of September—a step that typically determines how the law will function in practice, including the operational rules that govern issuance, transfer, and compliance.
Importantly, the FSC also indicated it would decide the timetable for phase two and phase three after the subordinate revisions are prepared, meaning that the later phases are not fully locked in by the Feb. 4, 2027 recognition date.
Before the roadmap begins, the FSC said it would work with the Korea Securities Depository (KSD) to develop the tokenization infrastructure required for the framework. For investors and firms, that matters because successful tokenization depends heavily on the readiness of core market plumbing—interfaces with registries, confirmation of ownership records, and the ability to reconcile onchain activity with established capital markets processes.
Why the roadmap signals a tightening regulatory stance
This announcement comes as South Korean regulators have been steadily moving closer to a defined regime for tokenized assets. Earlier, the FSC had indicated that it would publish detailed tokenized securities rules to bring them under the country’s capital markets framework in 2027, according to reporting on the FSC’s prior stance.
In addition, South Korea has been experimenting with tokenized settlement concepts outside of securities issuance. In April, the Ministry of Economy and Finance announced a pilot project using tokenized deposits for executing government operational spending, with a full rollout planned for the fourth quarter of 2026. That effort is separate from the FSC’s tokenized securities framework, but it reinforces the broader regulatory direction: using tokenization not only for trading or issuance, but potentially for real-world payments and operational transfers.
Viewed together, the FSC’s roadmap suggests South Korea is trying to reconcile two priorities that often clash in tokenization discussions: preserving the legal certainty of traditional capital markets while making room for blockchain-based representation and, eventually, onchain payment rails.
At the same time, the phased nature of the plan leaves practical questions open. The biggest uncertainty for market participants is likely how quickly phase two and phase three will move after the subordinate regulations are drafted, and what technical and compliance requirements will accompany stablecoin-linked onchain payments.
For readers watching this space, the next signals to track are the FSC’s subordinate regulation revisions due by the end of September and the details that emerge from its coordination with the KSD—especially anything clarifying how settlement, custody records, and stablecoin-linked payment flows will be handled under the updated legal framework.
An attacker drained roughly $1.73 million from Notional Finance’s legacy escrow contract early Friday, exploiting a coding flaw that made an enormous fabricated debt register as zero.
The stolen DAI and USDC became about 689 ether (ETH). The funds then went through Tornado Cash, a service that breaks the trail between wallets. Notional has said nothing publicly.
How the Notional Finance Exploit Worked
Notional Finance is a fixed-rate lending protocol on Ethereum. Its first version recorded future cash obligations as tokens called fCash. The system screened borrowers for collateral before letting them add debt.
That screening converted debt into ether terms through a raw uint128 conversion. Two mints summed to exactly two raised to the power of 128. That is the single value the conversion flattens to zero, QuillAudits found.
A checked conversion would have rejected the figure instead of quietly dropping its digits. Notional used the safer method elsewhere in the same file, according to the write-up.
The account then read as debt free. Etherscan records show the setup landed at 11:58 p.m. UTC Thursday and the withdrawal three minutes later.
That second transaction moved 69,257 DAI and 1,658,524 USDC out of the escrow. The attacker also tipped block builder Titan 0.07 ETH to route the trade privately.
Security firm PeckShield relayed a warning from on-chain monitor Specter. The escrow now holds about $60,600 in leftover tokens.
Dormant V1 Contracts Still Held Real Money
Notional wound down its third version after the November 2025 Balancer exploit cascaded into its vaults. The V1 contracts stayed live and funded, and nobody swept them.
Independently audited protocols still account for most crypto hack losses, so an old review offered no cover here. June brought a close parallel, when an attacker drained legacy Solana pools at Raydium.
Notional’s NOTE token trades near $0.0065, up 3.5% over 24 hours, on a market value close to $400,700.
Notional had issued no statement, loss figure, or post-mortem at publication. Whether the drained cash belonged to users, the treasury, or a third party remains unconfirmed.
The post Notional Finance Hit by $1.7 Million Exploit From Integer Overflow Bug appeared first on BeInCrypto.
Your day-ahead look for Sept. 4, 2026
The Aussie enters this week with genuine hawkish backing after Australia’s Q2 GDP surprised sharply to the upside, pushing the market-implied probability of a September RBA hike from 48% to 57%, with a November move now more than fully priced. Governor Bullock’s board has already flagged upside inflation risks tied to Middle East-driven energy costs, and rising Australian bond yields, which touched their highest level since April 2011 this week, are only reinforcing that hawkish backdrop.
Across the Tasman, the RBNZ delivered exactly what all five major New Zealand bank economists expected on Wednesday: a 25bp hike to 2.75%, the second consecutive increase after July’s tightening move. Headline inflation remains elevated at 4.1%, though the central bank’s own projections signal a likely pause in October before potentially resuming in December, leaving markets pricing roughly a 30% chance of another hike this year.
The result: two central banks now both firmly in tightening mode, though the RBA’s path still carries more near-term uncertainty than the RBNZ’s, whose next move already looks broadly telegraphed through year-end.
Technical Analysis of AUD/NZD
As the AUD/NZD chart shows, the pair staged a sharp rally from the 1.19633 low, riding a steep ascending trendline that has powered the entire late-August advance. That rally has since run into resistance near the 1.22897 high, the 0 Fibonacci level, where price is now consolidating just above the 0.236 retracement near 1.22127, caught between a shorter-term descending trendline from this week’s peak and the broader medium-term descending trendline that has capped the pair since late June.
Bullish Scenario
Should buyers defend the 0.236 retracement and the ascending trendline while breaking above the short-term descending trendline, the path would open towards a retest of the 1.22897 high. A confirmed break above that level would mark a genuine shift in the broader multi-month structure.
Bearish Scenario
Conversely, a break below the 0.236 level and the steep ascending trendline would expose the intermediate 1.213–1.215 support zone, coinciding with the 0.5 Fibonacci retracement. A deeper slide below that zone would risk a fuller retracement of the late-August rally, back towards the 0.618–0.786 area near 1.203–1.209.
With price squeezed between a reclaimed short-term trendline, a defended ascending trendline, and the long-term descending trendline, AUD/NZD looks poised for a decisive move. Will the RBA’s hawkish momentum push the pair through resistance, or will the broader downtrend since June reassert control?
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Financial regulators unveiled a phased roadmap moving traditional capital markets onto distributed ledgers, concluding with onchain stablecoin settlement.
Adam Aron, the CEO of AMC Entertainment Holdings, criticized Robinhood’s tokenized stock offerings that provide economic exposure to AMC shares, stating the company has no affiliation and that it will have a securities counsel investigate the matter.
Robinhood’s stock tokens are not registered under US securities laws and are an “outrageous” offering with no affiliation to AMC, Aron wrote in a Friday X post, adding that the company will request an investigation from its outside securities counsel.
Aron added that these stocks may not be offered to US investors and that they are subject to restrictions in several other jurisdictions, including Canada, Switzerland and the UK.
The remarks come as the latest criticism targeting tokenized stocks, which are blockchain-based shares tracking the price of traditional company shares. Tokenized stock recently came under scrutiny when some crypto exchanges canceled their SpaceX IPO allocations earlier in June.
Platforms including Bybit, Binance, Bitget Wallet and MEXC canceled their tokenized SpaceX IPO campaigns as SpaceX went public on the Nasdaq, with several blaming Kraken-owned xStocks’ inability to deliver the underlying assets.
Related: VARA, Securitize sign MoU for tokenization innovation in Dubai
Robinhood launches tokenization initiatives
Robinhood co-founder and CEO, Vlad Tenev, responded to the criticism on X by asking Aron to share his exact concerns tied to the tokenized offering. The platform did not issue a public statement.
Cointelegraph has approached Robinhood for comment on the remarks and the regulatory status of its tokenized stock offerings.
The first generation of Robinhood stock tokens launched in July 2026 as tokenized debt securities issued by Jersey-based Robinhood Assets as ERC-20 tokens, providing economic exposure to underlying assets such as US stocks and exchange-traded funds.
In February, Robinhood launched a public testnet for Robinhood Chain, its Ethereum layer‑2 network built using Arbitrum technology to host tokenized assets.
In October 2025, Robinhood shared plans to tokenize nearly 500 US stocks and ETFs on Arbitrum, as part of its push into tokenized assets.
In July 2026, Bernstein analysts raised their price target on Robinhood Markets, predicting that the platform’s next phase of growth will be driven by tokenized equities and prediction markets, rather than traditional crypto trading.
Magazine: How Hong Kong is turning tokenized bonds into real market infrastructure
BTC pushed through the level that capped it in late August, while zcash gained 16% and dash 19%.
South Korea’s Financial Services Commission (SFC) introduced a three-phase roadmap to develop infrastructure for tokenized securities issuance, for assets including stocks, bonds and funds.
Starting Feb. 4, 2027, tokenized securities will be legally recognized as digitized forms of securities after an update to the Act on Electronic Registration of Stocks and Bonds is scheduled to take effect, the FSC revealed in a Friday press release.
The first phase will offer tokenized securities legal recognition, including for institutional money market funds, bonds, unlisted stocks and fractional investment securities. Phase two would expand tokenization to all publicly offered securities, while phase three aims for onchain payments linked to stablecoins.
The roadmap is part of a planned implementation of the amended Capital Markets Act and Electronic Securities Act, the country’s first tokenized securities framework, scheduled to take full effect on Feb. 4.
Next, the FSC plans to propose revisions to relevant subordinate regulations by the end of September and decide the timeline for the second and third phase of the roadmap. Before the roadmap’s initiation, the FSC said it will work with the Korea Securities Depository (KSD) to develop the relevant tokenization infrastructure.
South Korean regulators have been moving closer to a regulatory framework for tokenized assets. In May, the FSC said it would release detailed tokenized securities rules to bring them under the country’s capital markets framework in 2027.
In April, South Korea’s Ministry of Economy and Finance announced a pilot project that will use tokenized deposits to execute government operational spending, with a full rollout set for the fourth quarter of 2026.
Related: South Korea to bring digital assets under new state asset management system
ZEC briefly traded above $1,020 as a sharp rally forced traders betting against the token out of leveraged positions.
The 10 Most Ambitious Biopics of All Time, Ranked
Yuh #memecoins #memecoin #crypto #solana #cryptocurrency
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